RMS 1.38% $2.20 ramelius resources limited

Buyers Building, page-22

  1. 20,495 Posts.
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    Spot on Kgtom
    Let's use this example . I want to buy million shares . What can I do
    Buy heads - spend 150000k
    Buy opppies spend 49k
    Buy heads using debt to find interest (coSt 1/3 of 4.8% ) or 1.6% on the 150k loan about 2100z. If I want leverage , I am better off using debt . Now the debt option opens up more downside but I also allows more time . One is paying the equivalent of 19k on 1 million units for a 3 month window . For 19k I could fund debt holding 1 million units for over 4 years and that's before tax deductions
 
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